Analysis of Return on Asset and Inflation on Stock Returns in Telecommunication Sector Companies on IDX

Aims: The primary objective of this study was to assess the impact of return on assets (ROA) and inflation on stock returns for telecoms businesses listed on the IDX from 2019 to 2023.

Study Design: This research is a quantitative study that intends to investigate the effect of Return on Asset and Inflation on Stock Returns.

Place and Duration of Study: Indonesia Stock Exchange (IDX) between March to October 2024.

Methodology: The research method used is descriptive method with a quantitative approach, with the classical assumption test data analysis method, multiple linear regression analysis and hypothesis testing. The sampling technique in this study was purposive sampling where only 10 of the 16 populations were sampled.

Results: The Sig. result for ROA is 0.010 <0.05 and the t count value is 2.679> t table 2.012, meaning that ROA on variable Stock Return has a significant effect partially, while for inflation it is 0.011> 0.05 and the t count value is 2.657 > t table 2.012 means that Inflation on variable Stock Return does not have a significant effect partially. As for the F test results, the calculated F value is 6.233. While in the distribution table the value of F at a significant level of 5% is 3.195. The significant value is at a value of 0.004> 0.05, it can be concluded that ROA (X1), and inflation (X2) simultaneously have a significant effect on Stock Returns (Y).

Conclusion: Both ROA and Inflation Partially has a negative and significant effect on stock returns. In addition, simultaneously the results showed that ROA and Inflation simultaneously had a significant effect on Stock Returns.